Revenue was $4.9 million in the Fiscal Year of 2012, compared to $3.1 million in the Fiscal Year 2011, reflecting a 61% growth in total revenue and a 63% recurring revenue growth year over year.

At the end of the 2012 fiscal year, Cortex had signed agreements with 43 buying organizations ("Hubs"), 28 more than at the end of fiscal 2011. At the end of fiscal 2012, 21 of the 43 Hubs were available to receive invoices from their suppliers electronically. Hubs are the main driving force for the growth in the Company as each new Hub brings a list of additional customers to the Network and provides additional destinations for existing users to send to. Cortex added 2,860 new customers and increased total transactions through the system 65%.

Cortex had a net loss of $9,303,590 or $0.05 per basic and diluted share, compared to net loss of $9,548,936 or $0.06 per basic and diluted share. This modest improvement in net loss year over year is the result of the Company's continued investment into US expansion, market development and the new technology platform. The expenditure in these areas has been declining over the last two quarters of fiscal 2012 and are expected to continue to decline for fiscal 2013.

"Cortex continues to grow our network of companies with excellent growth in 2012 specifically in the areas of new Hub signings and transaction growth," said Art Smith, President & CEO of Cortex. "Our revenue growth is accelerating with the network effect of our recurring revenue and we expect 2013 to be a significant year for the company as we expand our network in Canada and the United States."

Outlook

Cortex will continue to expand the Network by adding buying organizations (Hubs) and their supplier groups through current and new partnerships. Cortex will explore new sources of revenue, industry and partnership opportunities in Canada and the U.S.

Building on the strong Network growth in 2012, Cortex begins fiscal 2013 with 43 buying organizations signed to the Network, 21 Hubs active on the Network and 7,933 contracted suppliers. This is a strong improvement over where we started fiscal 2012 with 15 buying organizations and 5,073 suppliers. Our continued strong relationship with our clients will provide continued month over month revenue growth from increasing transaction volumes between our 43 Hub customers and their suppliers.

Organic Network growth, both in the number of customers connected and the number of transactions they do, has provided a solid revenue foundation for the Company. Management expects to see continued Hub signings in 2013 projecting to exit fiscal year ended July 31, 2013 with over 100 Hub customers.

Strategic partnerships with Full Circle, Powervision, Pandell, Basware, and Verian Technologies are providing numerous opportunities to add buying organizations in both Canada and the U.S.

With the addition of multiple buying organizations to the Network, management expects the growth of access and usage fee revenue stream to accelerate. This growth was 63% Fiscal year 2012 over Fiscal year 2011.

In the coming year, Management expects to complete more partnerships, launch new features to the Network and continue increasing recurring revenue.

Organic Network growth, both in the number of customers connected and the number of transactions they do, has provided a solid revenue foundation for the Company. Management expects to see continued Hub signings in 2013 projecting to exit fiscal year ended July 31, 2013 with over 100 Hub customers.

The Company has applied to the TSX Venture Exchange for the issuance of 2,207,900 common shares in alignment with the Company's Employee Performance Management ("EPM") Program. The issuance of these shares was voted on at the Company's AGM on June 11, 2012. These shares were applied for at a deemed price of $0.225. Of this amount 366,500 are to be issued to insiders.

Annual Results Conference Call

To call in for the live conference call please contact:

Toll-Free Dial-In Number: (877) 440-9795

Local Dial-In #: (416) 340-9432 (Toronto)

Time: 2:00 PM MST

A replay of the conference call will be available two hours after the call's completion and will expire by 11:59 pm EST on November 29, 2012. You may listen to the recording by calling (905) 694-9451 or toll-free at 1-800-408-3053. The password for the replay is 6143140.

About Cortex Business Solutions

Cortex Business Solutions Inc. is a leading eCommerce service company that improves efficiencies, reduces costs and streamlines procurement and supply chain processes for its customers. Accessing the Cortex Network enhances the exchange of business critical documents, such as purchase orders, receipts and invoices resulting in improved cash flow management and business controls, while reducing day's outstanding and administrative costs. Cortex is a low cost, low risk solution that can be implemented quickly by leveraging its customers existing business environment - evolving business. For more information please visit our website at www.cortex.net.

Forward-Looking Statements

Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement.

Cortex Business Solutions Inc.

Consolidated Statements of Financial Position

(Prepared in Canadian dollars)

July 31 2012

July 31 2011

Assets

Cash

$

6,750,970

$

9,695,210

Accounts receivable

847,847

514,877

Prepaids and deposits

168,160

213,063

7,766,977

10,423,150

Property and equipment

611,082

744,565

Intangible asset

2,970,245

1,833,019

$

11,348,304

$

13,000,734

Liabilities

Current liabilities

Accounts payable and accrued liabilities

$

1,842,431

$

1,613,030

Current portion of deferred revenue

710,598

688,766

2,553,029

2,301,796

Deferred revenue

342,368

771,843

2,895,397

3,073,639

Shareholders' Equity

Share capital

41,858,963

33,851,308

Warrants

753,202

1,135,282

Contributed surplus

5,029,271

4,825,444

Deficit

(39,188,529

)

(29,884,939

)

8,452,907

9,927,095

$

11,348,304

$

13,000,734

Cortex Business Solutions Inc.

Consolidated Statements of Loss and Comprehensive Loss

For the years ended July 31, 2012 and 2011

(Prepared in Canadian dollars)

2012

2011

Revenue

Access and usage fee

$

4,093,869

$

2,512,978

Integration fees

552,601

-

Set-up fees

290,847

399,527

Project management

-

150,000

4,937,317

3,062,505

Expenses

General and administrative

1,356,068

734,477

Internet and hosting costs

124,363

85,696

Market expansion and product development

2,273,850

1,875,279

Professional fees

181,896

163,642

Rent

322,493

317,849

Salaries, employee benefits and subcontract

8,922,904

8,032,615

Stock-based compensation

496,396

1,233,010

Amortization

603,562

224,763

14,281,532

12,667,331

Loss before the following

(9,344,215

)

(9,604,826

)

Finance income

40,625

55,890

Net loss and comprehensive loss

$

(9,303,590

)

$

(9,548,936

)

Net loss per share-basic and diluted

$

(0.05

)

$

(0.06

)

Cortex Business Solutions Inc.

Consolidated Statements of Cash Flows

For the years ended July 31, 2012 and 2011

(Prepared in Canadian dollars)

2012

2011

Cash provided by (used in)

Operating activities

Net loss

$

(9,303,590

)

$

(9,548,936

)

Items not affecting cash

Stock-based compensation

496,396

1,233,010

Amortization

603,562

224,763

Salaries paid in shares

10,687

133,711

(8,192,945

)

(7,957,452

)

Changes in non-cash working capital

332,878

(265,966

)

Net cash used in operating activities

(7,860,067

)

(8,223,418

)

Financing activity

Proceeds from issuance of shares and warrants, net of issue costs

6,647,402

8,431,249

Net cash from financing activity

6,647,402

8,431,249

Investing activities

Acquisition of property and equipment

(125,364

)

(406,498

)

Software development costs

(1,481,941

)

(1,833,019

)

Changes in non-cash working capital

(124,270

)

84,012

Net cash used in investing activities

(1,731,575

)

(2,155,505

)

Cash outflow

(2,944,240

)

(1,947,674

)

Cash, beginning of year

9,695,210

11,642,884

Cash, end of year

$

6,750,970

$

9,695,210

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